Moreover, the report contains analyses of Apple leadership, business strategy, organizational structure and organizational culture. Figure 1. We develop a model relating self-control, risk preferences and conflict identification to cooperation patterns in social dilemmas. These include raising USD 1 million to help the victims of Hurricane Maria and USD 2 million to help the victims of Hurricane Harvey and Hurricane Irma in Puerto Rico. In the business world, almost every company should have a code of ethics. Veteran activists are constantly astounded —or cynical —at the way Apple has somehow been granted status as an “ethical” company. Available at: https://www.apple.com/supplier-responsibility/,  Zhou, M. (2019) âApple ditches five mineral suppliers over failure to pass human rights auditsâ CNET, Available at: https://www.cnet.com/news/apple-ditches-five-mineral-suppliers-over-failure-to-pass-human-rights-audits/. With such engagements, the company has increased its prestige to the extent that its name can be termed a… A webinar on corporate responsibility with CB Bhattacharya. It should be incorporated into daily actions/decisions, particularly ones that will have an effect on other persons and/or the environment. Apple emerges as the only company that has been awarded with a Clean Energy Index of 100%, according to Greenpeaceâs Clicking Clean Report. Available at: https://www.apple.com/supplier-responsibility/,  Supplier Responsibility (2019) Apple Inc. The multinational technology company has launched a health program that aims to empower female employees to improve their health awareness. The company partnered with The Conservation Fund to protect 36,000 acres of sustainable forest in North Carolina and Maine and more than 13,000 metric tons of wood was harvested responsibly. Apple’s suppliers are required to provide safe working conditions, treat workers with dignity and respect, act fairly and ethically, and use environmentally responsible practices wherever they make products or perform services for Apple. Research has been conducted in Appleâs ergonomics department on about 75 jobs within supply chain to identify ergonomic risks. The report also comprises discussions of Apple marketing strategy and its ecosystem. When Steve Jobs led Apple, it wasn’t as though the company was socially irresponsible. Apple reduced its overall carbon footprint from 29.5 million metric tons in 2016 to 27.5 million metric tons in 2017. Essay Sample: Apples ethics and social responsibility In researching the Apple Company’s Social (Supplier) and ethical responsibilities I found that their initiatives For Apple customers with their heads buried in their iPads, the stories were a shock. Stakeholder groups impose demands that translate to corporate social responsibilities, which influence firm performance. Apple is often praised for its environmental records that include decrease of total power consumption of Apple products by 57%, introduction of Mac mini as the worldâs most energy-efficient desktop computer and exceeding ENERGY STAR guidelines. Apple Inc Report contains a full analysis of Apple corporate social responsibility including Apple CSR issues. The company also responds to natural disasters. Under the leadership of Denise Young Smith, as Appleâs vice president for HR, Apple has expanded its employee benefits programs to a considerable extent. ABSTRACT Past and ongoing scandals in the business world provide justification for an increased emphasis on ethics and corporate social responsibility content in undergraduate business study, not as a separate course but integrated with other courses. Tim Ferriss: Bestselling Author, Human Guinea Pig, ESMT European School of Management and Technology, Human resources management/organizational behavior, Finance, accounting and corporate governance, Management sciences, decision sciences and quantitative methods, Brand positioning and consumer taste information, European School of Management and Technology GmbH. The Company, founded in 1977, also operates stores that offer Apple, Inc. products and customer service and solutions for these products. As predicted, we find a robust association between self-control and higher levels of cooperation, and the association is weaker for more risk-averse individuals. Apple provided educational programs to more than 3.6 million supplier employees since 2008. The current paper presents a case history of the… Apple is committed to provide the highest standards of ethics and social responsibility throughout their cooperation. Tim Cook is a member of Paulson Instituteâs CEO Council for Sustainable Urbanization, working with other CEOs of top Chinese and Western companies to advance sustainability in China. For example, expectant mothers can take up to four weeks before a delivery and up to 14 weeks after a birth, while fathers and other non-birth parents are eligible for up to six weeks of parental leave. As it is illustrated in Figure 2 below, the companyâs renewable energy program made a massive contribution to reduce the volume of CO2 emissions to a significant extent. Tim Cook is the only openly gay CEO of a Fortune 500 company and he has been praised as a strong champion of workforce diversity, The company reached equal pay to employees in 2016, 36% of all employees under 30, 29% of leaders and 39% of leaders under 30 are women at Apple. The multinational technology company has launched a group of health clinics called AC Wellness for its employees and their families. Apple enforces The Supplier Code of Conduct that is claimed to be the toughest in the electronics industry. Apples ethics have been noted as being unethical in the past and recently Apple has been accused of overworking employees long hours and having dangerous working conditions in its suppliers in China. Our model accounts for the data at least as well as do other models. APPLE, INC.’S ETHICS AND CORPORATE SOCIAL RESPONSIBILITY 2 is to evaluate Apple, Inc.’s ethical practices and social responsibility programs with the goal … We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Apple is committed to the highest standards of social and environmental responsibility and ethical conduct. Â© ESMT European School of Management and Technology. In 2017, the company returned US USD1.9M in excessive recruitment fees to 1558 people affected by bonded labour by suppliers. Apple has a code of ethics that every employee follows. Tim Cook is the CEO of Apple and serves on its Board of Directors. The company has launched Apple Supplier EHS Academy, an 18-month program that aims to improve employee health and safety in the industry throughout the globe. Copyright © 2020 Apple Inc. All rights reserved. 10 March 2016. Apple has prided itself for years for its distinct product quality.  Source: Environmental Responsibility Report (2018) Apple Inc.  Source: Environmental Responsibility Report (2018) Apple Inc. Interpretivism (interpretivist) Research Philosophy, https://macrumors.zendesk.com/hc/en-us/articles/202084918-Apple-Support-for-Charity, https://www.apple.com/newsroom/2019/01/out-of-a-culture-of-giving-a-world-of-difference/, https://www.apple.com/newsroom/2017/09/apple-community-responds-to-natural-disasters/, https://www.cnet.com/news/apple-ditches-five-mineral-suppliers-over-failure-to-pass-human-rights-audits/. Ethics and Social Responsibility Mitchell Askew Business Management Paper 1 2/4/2014 What is ethics and social responsibility and why is it important in the work place. Keynote speech by CB Bhattacharya, Dean of International Relations, E.ON Chair in Corporate Responsibility, ESMT European School of Management and Technology EBEN Annual Conference (European Business Ethics Network) Berlin, June 13th, 2014 APPLE, INC.’S ETHICS AND CORPORATE SOCIAL RESPONSIBILITY 2 is to evaluate Apple, Inc.’s ethical practices and social responsibility programs with the goal of examining the level of its moral and social responsibility. 50% of new hires in 2018 were from historically underrepresented groups in tech such as women, Black, Hispanic, Native American, and Native Hawaiian & Other Pacific Islander. Apple is more focused on social responsibility than ever before, but it's also becoming more bureaucratic and potentially losing its innovative streak. Apple corporate social responsibility (CSR) programs and initiatives are led by Lisa Jackson, Vice President of Environmental Initiatives, reporting directly to CEO Tim Cook. The research output from ESMT's faculty is published in international academic journals, which are first-class in their respective fields. In 2018 more than 250.000 hours Â volunteered and more than USD125 million donated to organizations around the world within the scope of âGlobal Volunteer Programâ. Apple Inc. has an improved brand image by engaging in corporate social responsibility initiatives. The company is aiming to achieve 4 gigawatts of new clean energy online in its supply chain by 2020. Customer confidence in how business operates has been severely shaking by recent corporate scandals and collapses, such as Enron and bank failures. In the larger, group capacity, a code of social responsibility and ethics is applied The company is currently powers 100% of its operations globally with 10% renewable energy, The multinational technology company has committed to bring 4 gigawatts of renewable power online by 2020. Before being named CEO in August 2011, Tim was Apple’s Chief Operating Officer and was responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. For instance, by supporting the local communities and reducing waste emission, Apple creates a good image. In essence, these two concepts provide a coherent framework that is used to explore the relationships within the business and communities in which they are operating. The most widely used indicator to measure the degree of innovation of an industry is each individual company's actual expenses on research and development (R&D), aggregated across the whole industrial sector. Apple offers recycling programs in 99 percent of the countries it operates and the company has diverted more than 508 million pounds of electronic waste from landfills since 2008. It was that every single thing was seen through the lens of the products. Whilst the information in their 2019 Environmental Responsibility report covered Apple's main environmental impacts, including conflict minerals, it included only one dated and quantified future environmental target: Because Apple lacked a second future-dated, quantified target we deducted a mark in the Environmental Reporting category. The image depicts a typical factory floor at the facility where many consumer electronics pro… Despite […] “Apple is committed to the highest standards of social responsibility across our worldwide supply chain. In China, Apple powers all of its offices and retail stores through solar panels mounted high off the ground, so the grass can grow and local yaks can eat it. With its highly coveted line of consumer electronics, Apple has a cult following among loyal consumers. Further, the good rapport makes other enterprises willing to be associated with the company. ESMT Innovation Index 2010 â Electricity Supply Industry. But for environmental, labor, and other social responsibility advocates, the only new part was the publicity. The program aims to train 1 million supplier female employees by 2020. 68% of people attending App Development and Swift course in 2018 had no coding experience. These research findings also provide cutting-edge and profound insights for the business community as well as the classroom through managerial publications and case studies. As such, Apple enjoys increased sales, as people willing to buy their products due to its clean and good image. In 2016 the company introduced Liam, a line of robots that can disassemble an iPhone every 11 seconds and sort its high-quality components so they can be recycled, In 2017, U.S. product packaging used on average 29% less plastic compared to the previous year, In 2017, the multinational technology companyâs 22 supplier facilities were certified as Zero Waste, including all iPhone final assembly sites. At Apple, we’ve always believed that education is a great equalizing force. CB Bhattacharya gives an interview on the Union Budget for 2012, which was presented by the Indian Finance Minister Pranab Mukherjee. A German and a French utility, RWE and EDF, lead the ranking within our sample. With the ESMT Innovation Index 2010 â Electricity Supply Industry, we suggest expanding the notion of innovation beyond R&D indicators to achievements in productivity and sustainability. Apple has very strong brand position with U.S. consumers, and to date the problems that exist are not Apple's "responsibility." However, while Apple may toot its own horn for forcing its suppliers to adopt ‘clean’ energy, the phone giant’s commitment to social responsibility is piecemeal at best. The key ethical challenges when evaluating if Apple is a socially responsible company include product quality, user privacy, and sustainability and environmental impact to determine if Apple is a socially responsible company. He examines the question: âWhen companies do good things for the environment or for society, does it actually influence the consumerâs intention to buy their products rather than a competitorâs product?â, Reputation Institute - Keynote on corporate reputation. Corporate Social Responsibility-Is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public.  Apple Support for Charity (2015) Available at: https://macrumors.zendesk.com/hc/en-us/articles/202084918-Apple-Support-for-Charity,  Out of a culture of giving, aÂ world of difference (2019) Apple Newsroom, Available at: https://www.apple.com/newsroom/2019/01/out-of-a-culture-of-giving-a-world-of-difference/,  Apple community responds to natural disasters (2018) Apple Newsroom, Available at: https://www.apple.com/newsroom/2017/09/apple-community-responds-to-natural-disasters/Â Â Â. MGMT (2013-2014) workplace deviance, ethics : Ethics is the set of moral principles or values that defines right and wrong for a person or group. Apple's 2019 Environmental Responsibility Report included sections on the use of p… Company has achieved an average 95per cent compliance among suppliers to maximum 60-hour workweek. Apple, Inc. is a manufacturer and distributor of electronic products including personal computers, mobile phones, mp3 music players, and tablet computers as well as software and applications for their electronic devices. Apple campus in Austin, Texas, irrigates its drought-tolerant plants using a 600,000-gallon rainwater cistern. Accenture - Webinar on corporate responsibility. Apple aims to contribute to transition up to 1 million acres of forest, across five southern provinces, into responsible management by 2020, In 2017 Apple trained more than 3 million supplier employees on their rights, including local labour laws, and Appleâs Supplier Code of Conduct. The Role of Ethics and Social Responsibility Your Name University name Instructor name Date Abstracts Ethics and social responsibility occupy an important place in human value system. Apple’s success is partly due to its ability to satisfy stakeholders and corporate social responsibilities (CSR). Supplier Clean Energy program has motivated 23 manufacturers to power all of their Apple operations with 100% renewable energy. Among the hundreds of companies producing and selling consumer electronics, Apple is frequently cited as the poster child of companies partnering with factories in China that are engaged in unethical and inhumane labor practices.“Your Conscience Calling” (shown here) was a graphic used in a February 2011 Wired Magazine article about Foxconn. The interview appeared live on the Times of India's TV station Times Now. Apple's Current Position On Its Ethical And Social Responsibilities Corporations are increasingly seeking a vision in maintaining social responsibility alongside a vision in business. Demand like this meant that Apple was in line to make over $52 billion in profits in 2015, the largest annual profit ever generated from a company’s operations. It has to be noted that âSteve Jobs wasn’t known for philanthropy.Â Some wonderedÂ if he made anonymous donations to charity, someÂ criticized him for his lack of public giving, while othersÂ defended himâ. After the completion of the course they were able to build an app. The theory of social responsibility and ethics applies in both individual and group capacities. âGlobal Volunteer Programâ was launched in 2011 to encourage employees to volunteer in local communities. However, with Tim Cook assuming Apple leadership in 2011, the focus on CSR aspect of the business has increased to a considerable extent.  Environmental Responsibility Report (2018) Apple Inc.  Supplier Responsibility (2019) Apple Inc. 240 suppliers and 270,000 workers have participated in this program. Apple Inc. is a multinational American technology company which sells consumer electronics that have been claimed by critics to combine stolen and/or purchased designs that it claims are its own original creations. Here’s what Apple says on its website: “ Apple is committed to ensuring the highest standards of social responsibility wherever our products are made… In 2017, Apple used about 1 billion gallons of water directly, a 59 percent increase compared to 2016, The company launched Clean Water Program in 2013 and since more than 13,6 billion gallons of water have been saved by suppliers, Cooling systems in companyâs date centres can reuse water up to 35 times. Apple corporate social responsibility (CSR) programs and initiatives are led by Lisa Jackson, Vice President of Environmental Initiatives, reporting directly to CEO Tim Cook. The report aims at finding out whether practicing strong business ethics and good corporate social responsibility has an impact on the operations of Apple. These programs are designed to help people explore new opportunities and acquire in-demand skills — even people who are never directly involved in building an Apple product. The company offers employees more than 550 electric vehicle charging ports for free, an increase of 67 percent compared to the previous year to encourage the usage of electric vehicles, All the fibers Apple uses in product packaging are 100% responsible sourced. Social Responsibility- a company or business's concern for a society's welfare. Free riders differ from other contributor types only in their tendency not to have identified a self-control conflict in the first place. A code of ethics if a guide to help marketing managers and other employees make better decisions within the business. We subject our model to data from an experimental public goods game and a risk experiment, and we measure conflict identification and self-control. (Investmentopia, 2018) Arguments for Corporate Social Responsibility:-Creating higher standards for suppliers and business partners. Strong, bold, and kind: Self-control and cooperation in social dilemmas. In its Supplier Code of Conduct, Apple states: “Apple suppliers are required to provide safe working conditions, treat workers with dignity and respect, act fairly and ethically, and use environmentally responsible practices wherever they make products or perform services for Apple … Apple’s world-wide developer’s conference (WWDC) kicked off today in San Franisco with a keynote that many expected to be low on new product announcements. Right to Repair (nytimes.com) Ethical or unethical behavior in the workplace of Apple as a company has been up and down with some controversy. It has to be noted that “Steve Jobs wasn’t known for philanthropy. How Tim Cook brought corporate social responsibility to Apple. We’ve provided education and training to more than four million supplier employees since 2008. And that has been enough so far. The program has been revised in March 2015 to grant employees the right to choose the projects in their local communities they would like to contribute. The research has resulted in improved standards for managing workstation design changes. Yes, Apple cared about its environmental impact, and it reported on this on a product level. In 2018, Apple removed five mineral suppliers from is supply chain for failing to pass or not being willing to participate in human rights audits. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porterâs Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Through their Code of Conduct they ensures that working conditions in Apple's supply chain are well safe, also that their workers are treated with respect and dignity, and that the manufacturing process are environmentally responsible. Apple educated more than 17,3 million employees of its suppliers on their rights since 2007. Despite the initiatives above, water usage by Apple data centres, retail and corporate facilities have been consistently increasing over the last four years, as illustrated in Figure 1 below. We test the methodology of the innovation index with a set of 15 large European electricity utilities and find that innovation activities have substantially increased over the last four years. Foxconn is to blame. Apple’s Perspective About its Ethics and Social Responsibilities Apple Inc. purports to be superior in all dimensions including ethics and promotion of employee wellbeing. Apple Park, a campus in Cupertino uses 75% recycled non-potable water. Apple received Ethical Consumer's worst rating for environmental reporting in 2019. Water usage by Apple Inc (in millions of gallons).. During the 2014 holiday season, 74.5 million iPhones were sold. Keynote speech: Global Challenges in Responsible Business, Keynote speech by CB Bhattacharya, Dean of International Relations, E.ON Chair in Corporate Responsibility, ESMT European School of Management and TechnologyEBEN Annual Conference (European Business Ethics Network)Berlin, June 13th, 2014, Research video: CB Bhattacharya talks about getting better at doing good, In this new video, CB Bhattacharya, E.ON Chair in Corporate Responsibility, talks about his recent research.